{"id":66665,"date":"2023-03-16T09:05:59","date_gmt":"2023-03-16T13:05:59","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66665"},"modified":"2023-03-16T09:05:59","modified_gmt":"2023-03-16T13:05:59","slug":"coffee-with-greta-regional-banks-still-sliding","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/03\/16\/coffee-with-greta-regional-banks-still-sliding\/","title":{"rendered":"Coffee With Greta: Regional Banks Still Sliding"},"content":{"rendered":"

DJIA Futures: <\/b>-95 (-0.3%)<\/span><\/p>\n

SPX Futures:<\/b> -9.5% (-0.2%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+3 (+0.02%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are mostly lower as regional bank shares continue to drop and traders digest new economic data.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Regional Banks Continue Slide<\/span><\/h2>\n

First Republic Bank <\/b>(FRC) shares are tumbling 33.3% ahead of the open as concern about the future of U.S. regional banks continues.\u00a0<\/span><\/p>\n

Other regional banks are also under pressure with <\/span>PacWest Bancorp <\/b>(PACW) dropping 17.8% and <\/span>Western Alliance Bancorp <\/b>(WAL) falling 7.6%.\u00a0<\/span><\/p>\n

First Republic had the third highest rate of uninsured deposits among U.S. banks last week.\u00a0<\/span><\/p>\n

It was behind SVB and Signature Bank, which were both shutdown by regulators.\u00a0<\/span><\/p>\n

The bank has said it is weighing its options to stabilize its business, including a potential sale.\u00a0<\/span><\/p>\n

But analysts say any sale under pressure may end up being a bad deal for shareholders.<\/span><\/p>\n

Swiss National Bank Backs Credit Suisse<\/span><\/h2>\n

Credit Suisse <\/b>(CS) shares are up 4.6% in premarket trade after the bank announced it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank.\u00a0<\/span><\/p>\n

That money will be under a covered loan facility and a short-term liquidity facility at the Swiss National Bank.\u00a0<\/span><\/p>\n

Credit Suisse said the money will, \u201csupport Credit Suisse\u2019s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.\u201d<\/span><\/p>\n

The measures come after Credit Suisse shares tumbled on Wednesday after the Saudi National Bank said it would not be able to provide more capital to the bank.\u00a0<\/span><\/p>\n

Weekly Jobless Claims Tumble<\/span><\/h2>\n

Weekly jobless claims dropped more than expected last week.\u00a0<\/span><\/p>\n

The Labor Department reported 192,000 Americans filed initial unemployment claims.\u00a0<\/span><\/p>\n

That was down by 10,000 from the previous week\u2019s revised level and better than expectations for 205,000.\u00a0<\/span><\/p>\n

Continuing claims dropped by 29,000 to 1.68 million in the week ending March 4.<\/span><\/p>\n

The data is a sign of the labor market maintaining strength amid the Fed\u2019s rate hiking cycle.\u00a0<\/span><\/p>\n

Housing Starts, Building Permits Surge<\/span><\/h2>\n

U.S home construction surged in February.\u00a0<\/span><\/p>\n

The Census Bureau reported housing starts jumped 9.8% to a seasonally adjusted annual rate of 1.45 million units last month.\u00a0<\/span><\/p>\n

That was sharply higher than expectations for starts to be unchanged at an SAAR of 1.31 million units.\u00a0<\/span><\/p>\n

Single-family starts rose 1.1% while multi-family starts surged 24.1%.\u00a0<\/span><\/p>\n

The growth is expected to continue in months ahead as new permits issued in February surged 13.8% to an SAAR of 1.52 million units.<\/span><\/p>\n

That was also better than expectations for 1.34 million.<\/span><\/p>\n

Single-family permits rose 7.6% while multi-family permits jumped 24.3%.<\/span><\/p>\n

Philly Fed Manufacturing Index Remains In Contraction<\/span><\/h2>\n

Another key manufacturing gauge is deep in contraction territory.\u00a0<\/span><\/p>\n

The Philadelphia Fed\u2019s manufacturing index improved by just over 1 point this month to -23.2.\u00a0<\/span><\/p>\n

That was worse than expectations for a -14.5 reading.\u00a0<\/span><\/p>\n

New orders fell to -25.4 while shipments dropped to -28.2.\u00a0<\/span><\/p>\n

Manufacturers also reported a decline in employment with the employment index decreasing from 5.1 to -10.3.\u00a0<\/span><\/p>\n

That\u2019s the second negative reading since June 2020 and the lowest reading since May 2020.\u00a0<\/span><\/p>\n

This negative data comes after the Empire State manufacturing index dropped deep into contraction territory as well on Wednesday.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Homebuilder sentiment rose unexpectedly in March. The National Association of Homebuilders sentiment index rose to 44 this month from 42 in February. That topped expectations for the survey to decline to 40. Builders have been feeling more confident about the future of the housing market this year as mortgage rates cool and demand remains high.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: -95 (-0.3%) SPX Futures: -9.5% (-0.2%) NASDAQ Futures: +3 (+0.02%) Good morning friends! Futures are mostly lower as regional bank shares continue to drop and traders digest new economic data.\u00a0 Let\u2019s get right to it! Regional Banks Continue Slide First Republic Bank (FRC) shares are tumbling 33.3% ahead of the open as concern about the future of U.S. regional banks continues.\u00a0 Other regional banks are also under pressure with PacWest Bancorp (PACW) dropping 17.8% and Western Alliance Bancorp (WAL) falling 7.6%.\u00a0 First Republic had the third highest rate of uninsured deposits among U.S. banks last week.\u00a0 It was behind SVB and Signature Bank, which were both shutdown by regulators.\u00a0 The bank has said it is weighing its options to stabilize its business, including a potential sale.\u00a0 But analysts say any sale under pressure may end up being a bad deal for shareholders. Swiss National Bank Backs Credit Suisse Credit Suisse (CS) shares are up 4.6% in premarket trade after the bank announced it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank.\u00a0 That money will be under a covered loan facility and a short-term liquidity facility at the Swiss National Bank.\u00a0 Credit Suisse said the money will, \u201csupport Credit Suisse\u2019s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.\u201d The measures come after Credit Suisse shares tumbled on Wednesday after the Saudi National Bank said it would not be able to provide more capital to the bank.\u00a0 Weekly Jobless Claims Tumble Weekly jobless claims dropped more than expected last week.\u00a0 The Labor Department reported 192,000 Americans filed initial unemployment claims.\u00a0 That was down by 10,000 from the previous week\u2019s revised level and better than expectations for 205,000.\u00a0 Continuing claims dropped by 29,000 to 1.68 million in the week ending March 4. The data is a sign of the labor market maintaining strength amid the Fed\u2019s rate hiking cycle.\u00a0 Housing Starts, Building Permits Surge U.S home construction surged in February.\u00a0 The Census Bureau reported housing starts jumped 9.8% to a seasonally adjusted annual rate of 1.45 million units last month.\u00a0 That was sharply higher than expectations for starts to be unchanged at an SAAR of 1.31 million units.\u00a0 Single-family starts rose 1.1% while multi-family starts surged 24.1%.\u00a0 The growth is expected to continue in months ahead as new permits issued in February surged 13.8% to an SAAR of 1.52 million units. That was also better than expectations for 1.34 million. Single-family permits rose 7.6% while multi-family permits jumped 24.3%. Philly Fed Manufacturing Index Remains In Contraction Another key manufacturing gauge is deep in contraction territory.\u00a0 The Philadelphia Fed\u2019s manufacturing index improved by just over 1 point this month to -23.2.\u00a0 That was worse than expectations for a -14.5 reading.\u00a0 New orders fell to -25.4 while shipments dropped to -28.2.\u00a0 Manufacturers also reported a decline in employment with the employment index decreasing from 5.1 to -10.3.\u00a0 That\u2019s the second negative reading since June 2020 and the lowest reading since May 2020.\u00a0 This negative data comes after the Empire State manufacturing index dropped deep into contraction territory as well on Wednesday. In Case You Missed It Homebuilder sentiment rose unexpectedly in March. The National Association of Homebuilders sentiment index rose to 44 this month from 42 in February. That topped expectations for the survey to decline to 40. Builders have been feeling more confident about the future of the housing market this year as mortgage rates cool and demand remains high.<\/p>\n","protected":false},"author":41,"featured_media":66679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=66665"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66665\/revisions"}],"predecessor-version":[{"id":66680,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66665\/revisions\/66680"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66679"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}